How Low Are Soybean Prices Going?Soybean futures in the January contract is trading lower for the 5th consecutive session down another $0.07 at 8.85 a bushel hitting a 10 week low continuing its bearish momentum.
Yesterday’s crop progress report stated that 94% of the crop has been harvested and that should be wrapped up by next week as we will now focus on the 2020 acres number and that should give us an estimate of what next year’s production numbers might be.
I have been recommending a bearish position from around the 9.23 level & if you took that trade continue to place the stop loss above the 2 week high standing at 9.23 as the chart structure will start to improve in next week’s trade therefor lowering the monetary risk. If you have been following my previous blogs you understand that I continue to think that prices will retest the contract low which was hit on September 9th at 8.65 possibly in next weeks trade as technically and fundamentally speaking this market remains weak.
Soybean prices are trading far below their 20 and 100 moving average telling you that the trend is to the downside as this is my only grain recommendation currently so stay short and continue to place the proper stop loss.
CHART STRUCTURE: IMPROVING
This article was written by Michael Seery (CTA—COMMODITY TRADING ADVISOR) www.seeryfutures.com